Laos, Thai company form joint venture in field of clean energy
 
The Government of Laos and Energy Absolute Public Company Limited from Thailand (EA) have collaboratively formed a joint venture company named Super Holding Company, to manage the clean energy business over 7GW towards the goal of Laos becoming the “Battery of Asia”.

Mr Santiphab Phomvihane (left) and Mr Somphote Ahunai shake hands after signing an agreement in Vientiane on Monday.

This entity will centrally oversee the management and distribution of clean energy, promoting the adoption of electric vehicles and advancing Laos’ sustainable growth initiatives.
The partnership aims to bolster revenue from clean energy within three years, alleviate dependency on crude oil imports, facilitate the development of energy storage solutions, offer electric vehicle solutions, and invest in further renewable energy projects to advance the national goal of positioning Laos.
An agreement on joint investment in the energy sector between the Lao government and EA was signed in Vientiane on May 13, 2024.
The agreement was signed by the Minister of Finance, representing the Lao government, Mr Santiphab Phomvihane, and the CEO of EA, Mr Somphote Ahunai.
The signing was witnessed by the Lao Prime Minister Sonexay Siphandone, Deputy Prime Minister and Minister of Foreign Affairs, Mr Saleumxay Kommasith, Governor of the Bank of the Lao PDR, Mr Bounleua Sinxayvoravong, and other officials as well as EA representatives.
The CEO of EA, Mr Somphote Ahunai, said at the signing ceremony in Vientiane on Monday that Super Holding Company will serve as a centralised hub for managing clean energy, facilitating integrated distribution, and promoting the adoption of electric vehicles.
The initiative aims to generate added value for Laos, enhance its competitive edge, and address long-term economic stability concerns.
The core mission of Super Holding Company is to manage clean energy in an integrated manner.
This includes asset management, overseas energy distribution management via a Single Gateway framework, and serving as the principal entity for future investments in the country’s clean energy sector or related ventures.
With the Government of the Lao PDR as the principal shareholder and entrusted with the professional management team, Super Holding Company aims to instigate economic reform fundamentals, fostering a self-sufficient ecosystem conducive to driving clean energy adoption and fostering sustainable economic development in Laos.
Initially, the company will undertake multiple hydropower projects with a combined capacity of more than 7GW, which will be managed under its purview. It will also serve as a centre for managing renewable energy initiatives and oversee the exportation of total power energy.
Additionally, the company will be granted a supplementary 25-year concession period, with the government further incentivising the adoption of electric vehicles to curtail fossil fuels imports.
EA will also assume responsibility for managing fundraising activities, with an anticipated target of US$1 billion, aimed at revitalising Laos’ international reserves, reducing debt, strengthening the kip currency, and reinstating investor confidence.
Over the medium term of 2 to 3 years, the company plans to develop value-added projects such as floating solar, energy storage systems and enhance project efficiency.
It will also seek to expand its power export market, bolster support for electric vehicle adoption in Laos, and increase the number of EV charging stations nationwide.
These efforts are expected to boost Laos’ revenue and diminish its reliance on fossil fuel imports, with EA taking the lead in project development in collaboration with the Lao government.
EA has rich experience in developing and managing renewable energy projects and has an integrated electric vehicle production line, the first Gigawatt lithium-ion battery factory in ASEAN, as well as ultra-fast charge technology and EV assembly plant.

High-ranking Lao officials join company representatives for a photo at the signing ceremony.

By Times Reporters
 (Latest Update May 15, 2024)